Real estate aficionados who follow the upswings and dips in the Brooklyn real estate market were worried that the end of the first-time homebuyer’s credit would mean an end to housing sales. Sales were up, prices were down and the market seemed to be stabilizing – thanks, in large part, to the tax credit.  The tax credit motivated potential homebuyers to become actual homebuyers, which kept home sales stable.

Fortunately, those worries were groundless.  President Obama signed a five-month extension on the first-time buyer tax credit November 6^th. The Worker, Homeownership and Business Assistance Act of 2009 covers quite a few new bits of housing legislation:

• Extends the first-time tax credit until April 30, 2010
• Expands to include those homebuyers that haven’t owned a home in three or more years
• Allows first-time buyers that are overseas military personnel to take advantage of the credit until May 2011
• Requires documented proof that the buyer actually bought a home
• Changes the credit amount from $8,000 to “$8,000 or 10% of the home’s value”, whichever is less
• Sets the qualification guidelines at $125,000 a year or less for individuals and $225,000 or less for couples (credit amount becomes a scaled decrease above these income levels)
• Requires a minimum age of 18 for those applying for the tax credit
• Adds $6,500 tax credit for those that have lived in a home for at least five years, but want to buy a larger house

I think a lot of people want to own a home, and the extension of the tax credit can only help. As a result of the extension, buyers may take a little longer, peruse the Brooklyn real estate market and make sure they’ll enjoy the home they buy. While I don’t see a long line of buyers standing in line, I do see the potential for long-term market stabilization.

If you want to take advantage of the new tax credit extension, I can help. Call me Charles D’Alessandro of Fillmore Real Estate today at (718) 253-9600 ext. 206 or email me at [email protected] for more information.

Tags: brooklyn real estate

This entry was posted on Wednesday, December 9th, 2009 at 5:05 pm and is filed under Buying Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.